UFPLS and future pension payments

greenglide

I am in the process of claiming my DB pension (a private sector scheme) and one of the options I have is to take remaining AVCs after funding the maximum PCLS as a UFPLS which, of course, has its own PCLS.

Since this is "accessing my pension flexibly" my "future" pension contributions to SIPPS and personal pensions are limited to £10,000.

When is this limit imposed? Does it mean any further contributions from the day of the withdrawal are limited to £10,000 (so I can still contribute "new" money between that point and April next year or does it limit all contributions in the tax year (including the DB scheme AVCs) to £10,000? If it is the latter what happens if I have already contributed more the £10,000 in AVCs?

This matters as the AVC contributions plus an amount from pension augmentation of a redundancy payment over £30,000 will be just over £10,000 and I was planning to make some payments to my SIPP should I end up in the 40% tax band for this year. While the intention is to stay below the 40% band by deferring State Pension but a contingency plan if my calculations should be wrong would be nice.

PensionTech

When is this limit imposed? Does it mean any further contributions from the day of the withdrawal are limited to £10,000 (so I can still contribute "new" money between that point and April next year or does it limit all contributions in the tax year (including the DB scheme AVCs) to £10,000? If it is the latter what happens if I have already contributed more the £10,000 in AVCs?

It is the former, but your total contributions over the whole (April to April) year are still restricted to £40,000. So for instance, if you had contributed £35,000 between April 2016 and the date of the UFPLS, you would only be able to contribute another £5,000 between UFPLS and April 2017. If, on the other hand, you had contributed £25,000 between April 2016 and the UFPLS, you would be restricted to a further £10,000 - rather than the usual £15,000 - for the remainder of the year between UFPLS and April 2017.

(Edit - very minor point, and I only make it because you're a regular on here and so can probably tolerate my nit-picking - technically the 25% tax-free portion of the UFPLS isn't a PCLS!)

greenglide

I only make it because you're a regular on here and so can probably tolerate my nit-picking - technically the 25% tax-free portion of the UFPLS isn't a PCLS!

No, I suppose it isnt, just the tax free part of the lump sum which isnt pension commencement.

The earned income will be sufficient to cover all sensible pension contributions this year, it is mainly the pension income from LGPS that could push me into the 40% tax band if I get my sums wrong!

Thanks